$3 billion liquefied natural gas projects lined up at BOI

Four liquefied natural gas (LNG) projects totalling 2,040 Mega Watts (MW) of power are before the Board of Investment (BOI) and will soon be approved, officials said. "They are British, Indian and two US companies," an official told the Business Times adding that together these will fetch some US$3 billion.

Energy World International Ltd, a British owned company based in Hong Kong specialising in property investment and development, oil and gas exploration, infrastructure and power projects has applied to set up and operate LNG Power Plants with LNG Terminal and Storage Tank (capacity 80,000 cm) complete with offloading facility at Kerawalapitiya total 140MW at Katunayake Export Processing Zone (EPZ) which will be at a 50MW capacity, also at Biyagama EPZ (50MW) and Seethawaka EPZ (40MW) - all totalling an estimated Investment $325 million.

Shapoorji Pallonji Group which is a leading engineering, construction and services conglomerate in India, having a footprint in four subcontinents, has submitted a proposal in February to establish three filling stations/ infrastructures with 200 MW capacity.

"They have proposed to establish a 0.5 million Metric Tons Per Annum (MMPTA) processing, storage and regasification terminal, supply natural gas for Power Plants and gas stations for automobiles and also to establish a 200 MW (100 MW each in two phases) gas based power plants near Colombo Port," the official said.

Venture Global Power LLC, a US firm currently developing LNG imports and power projects in the Caribbean, Africa and South Asia has proposed to privately finance, develop, design, engineer, construction, commission, insure, own, operate and maintain offshore LNG terminal, storage, degasification terminal facility and a gas-fired combined cycle power plant (500 MW) and under water electrical transmis- sion line and underwater natural gas pipeline at Kerawalapitiya with an investment of $795 million, he said.

The official said that Sithe Global Power Ventures (SGPV) a wholly owned subsidiary of Sithe Global Power LLC of the US developing finances and operating large independent power generating facilities of a variety of fuel types throughout the world has proposed to develop an integrated LNG storage and regasification terminal together with a 500 MW natural gas fired combined cycle power generating station (expandable to 1,000 MW). "They also want to develop a natural gas pipeline from Hambantota to Kerawalapitiya along the corridor of the Southern Highway and has identified the Hambantota Port for this operation," he said adding it's a $1 billion project.

They have proposed to establish a 0.5 million Metric Tons Per Annum (MMPTA) processing, storage and regasification terminal, supply natural gas for Power Plants and gas stations for automobiles and also to establish a 200 MW (100 MW each in two phases) gas based power plants near Colombo Port